BUSINESS ARTICLE

Corporate Service Providers Act 2024 will come into effect on 9 June 2025: Key Changes and Compliance Guide

Corporate Service Providers Act 2024 will come into effect on 9 June 2025 Key Changes and Compliance Guide

Corporate Service Providers Act 2024 will come into effect on 9 June 2025: Key Changes and Compliance Guide

boardroomsuperadmin Business Insights, Corporate Secretarial

The Singapore Corporate Service Providers Act 2024 (“CSP Act”), effective 9 June 2025, introduces critical compliance requirements for businesses using corporate services in Singapore. In this article, we explore the key changes and the impact of these changes on businesses that engage corporate service providers.

Key Changes Effective 9 June 2025

The CSP Act is a key regulatory development in Singapore aimed at strengthening the corporate service providers industry. Introduced to enhance corporate governance and regulatory oversight, the CSP Act promotes transparency, ensures consistent compliance standards, and aligns with international anti-money laundering and counter-terrorism and proliferation financing obligations.

The CSP Act will officially take effect on 9 June 2025. To support its implementation, the Corporate Service Providers Regulations 2025 (“CSP Regulations”), which contain more detailed rules pertaining to the requirements under the CSP Act, was published on 8 May 2025 and will also come into effect on 9 June 2025.

Below are the key changes of the legislative amendments:

Mandatory ACRA Registration

All entities offering corporate services, such as company formation, company secretary, nominee director or shareholder services, or registered office address services in or from Singapore, must register with the Accounting and Corporate Regulatory Authority (ACRA) as registered Corporate Service Providers (CSPs). The changes will enhance the regulatory regime and level the playing field for all CSPs, and importantly, enable ACRA to take enforcement action against registered CSPs that breach AML/CFT/PF obligations (as defined below).

AML/CFT/CPF Obligations

All registered Corporate Service Providers (CSPs) are required to comply not only with existing anti-money laundering (AML) and countering the financing of terrorism (CFT) obligations, but also with measures to prevent the financing of the proliferation of weapons of mass destruction (“AML/CFT/PF obligations”). To mitigate financial crime risks, CSPs must conduct customer due diligence before delivering any corporate services, and where there is a reason to suspect money laundering, terrorism financing, or proliferation financing.

Fines for Non-Compliance

Breaches of AML/CFT/CPF obligations by CSPs or their senior management may incur fines of up to S$100,000 per breach, emphasising the importance of robust compliance.

Nominee Director Regulations

Only ACRA-registered CSPs can arrange nominee director appointments, and they must assess these directors as fit and proper. Individuals cannot act as nominee directors by way of business unless appointed by a registered CSP.

Disclosure Requirements

Nominee directors’ and shareholders’ status, along with their nominators’ identities, must be disclosed and filed to ACRA, enhancing transparency in corporate ownership. The nominee status will be made publicly available. However, only public authorities may access the full information of the nominators maintained by ACRA for the purposes of administration or enforcement of any written law.

Increased Fines for Registers

Companies will face higher penalties for non-compliance with maintaining accurate registers of registrable controllers, nominee directors, and nominee shareholders. This ensures proper record-keeping.

Robust compliance

What this Means for your Business

The CSP Act 2024 impacts businesses using corporate services in Singapore. These businesses may need to provide additional documentation, such as beneficial ownership or nominator details, to meet ACRA’s disclosure requirements. It is important to ensure that you are using a CSP that is ACRA-registered. The need for enhanced due diligence may also lead to additional processes with your CSP.

These measures enhance Singapore’s business environment, boosting trust for your operations.

Next Steps for Businesses using CSPs

To prepare for the CSP Act 2024, we encourage businesses to:

  • Verify your CSP’s ACRA registration from 9 June 2025.
  • Be prepared to provide any additional compliance-related information as required.
  • Stay informed through ACRA’s resources / our newsletters and webinars on compliance matters in Singapore.
  • Reach out to your specialist consultant at Boardroom for step-by-step guidance on how the CSP Act works.
How can BoardRoom Support your Business

How can BoardRoom Support your Business?

The CSP Act 2024 strengthens Singapore’s position as a premier international business hub, and BoardRoom is committed to helping your business navigate these changes. As an ACRA-registered CSP, we are fully prepared for the CSP Act 2024 effective June 9, 2025.

We are constantly updating our AML/CFT/PF processes and training our team to meet all regulatory requirements. We also offer personalised reviews of your corporate setup to ensure compliance with Singapore’s nominee director regulations and other obligations.

For guidance on CSP Act compliance, contact us today.

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